Area businesses feeling tickle from government checks

Big ticket items are not flying off the shelves of retailers in Wayne and Holmes counties, but shops and merchants are seeing the effects of the federal government's economic stimulus program.

"I don't know that anybody has directly come in with a check in hand, so to speak," said Kerry Taylor, owner of Millersburg Electric and a RadioShack franchise. "But, I can tell you that our sales have remained steady."

Local reactions to the stimulus checks range from Taylor's, who said the impact has been a subtle continuation of business, to MacKenzie Haiss, the owner of MacKenzie Silver & Gold in Wooster, who has had customers come in to spend their checks.

One man bought his wife an emerald ring. It came close to $600.

"He said, 'Oops, there goes my stimulus check,'" Haiss said.

Other customers have told Haiss specifically they were looking for something in the $600 price range, like one coming in to replace a wedding ring.

"I had no expectations, and my business is up," she said.

Christian Silva, owner de Silva Collections in Wooster, said he didn't develop any special advertisements or signs saying "spend your stimulus check here."

Silva had no expectations about what impact the checks would have, but business has been booming the past three months, he said.

"I don't know why," Silva said. "But we've really been very busy."

Other jewelers report sales are steady, but diamond rings in Wooster and 50-inch plasma TVs in Millersburg, are still not widely purchased goods.

"Our sales have been good," said Heather Kobilarcsik, the third-generation owner of White Jewelers in Wooster.

Part of the reason business is still steady for White's is because 20 percent of it comes from special orders and custom work, Kobilarcsik said. With the economy dipping and gold prices increasing, more people are coming to Kobilarcsik asking for new pieces to be made out of their grandmother's old gold, she said.

Economic stimulus has had little impact on the store's business, she added.

"It's not really the stimulus package as of yet, although I've seen some people come in and buy rings because of that," Kobilarcsik said.

Across the country, most businesses are seeing the same impact as Taylor and Kobilarcsik, a steady pace of business despite mounting consumer concerns regarding inflation.

According to the U.S. Commerce Department, inflation fell back slightly in May as $50 billion worth of tax rebate checks hit the mail and bank accounts.

The main impact of the checks has been to lift consumer spending. Even with inflation, spending increased by 0.4 percent for May as compared to a 0.2 percent increase for April.

"I was concerned that with the surge in gas prices our retail sales would be down this spring, but that doesn't seem to be the case," Taylor said. "So, I have to believe the stimulus package has played a role in that."

Another national trend Taylor has seen locally is a decline in the sale of mid-range goods. Consumers are purchasing higher-end goods, and Taylor also has seen the sale of low-end goods increase.

"There seems to be a decline in our mid-level price range," he said. "That's not just a short-term trend. That trend has been increasing and probably even more lately."

At Wooster's Martin Jewelers, co-owner Craig Forcell is one merchant who has seen a slight decline, not just in mid-level goods but in overall business.

"I just don't think it's going to go where they thought it was going to go," he said. "I think it's going to end up in a gas tank rather than stimulating the economy."

For Haiss and other consumers, an economic stimulus check is cause to celebrate.

"I think, and it's just my personal idea, is that since it's just something that comes out of the blue you should spend it on something more memorable," Haiss said. "I understand some people have bills to pay, but it's nice to be able to spend some of it on something memorable, something special."

But the real story of the stimulus check good or bad is still being written, Taylor indicated. "I guess whether or not the stimulus worked will be told in six months to a year," he said.

Reporter Katy Ganz can be reached at 330-674-1811 or e-mail kganz@the-daily-record.com.

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